Mixed-Use Property with
For Sale
$364,500
1306 Milligan Highway, Johnson City, TN 37601
Commercial Sale, Johnson City, TN
Property Size2,470 SF
Lot Size0.41 Acres
Price / SF$147.57
Days on Market143
Property Features for 1306 Milligan Highway
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
B-2
Directions
Located at 1306 Milligan Highway
Subdivision
303 - SE Johnson City
Standard status
Active
APN
055j C 002.00
Size
2,470 SF
Lot size
0.41 Acres
Taxes and HOA fees
Tax Annual Amount
788
Utilities
Utilities
Electricity Available
Sewer type
Private Sewer
Heating system
Heat Pump (Heating)
Cooling system
Heat Pump
Water source
Public
Building Details
Year built
1946
Building materials
Block
Roof type
Shingle
Listing Agency:
Tammy Perry Properties
(828) 964-3692
Listed By:
Tammy Perry · License #261709
(828) 898-5900
Added: May 1
Changed: Sep 3
Last Checked: Sep 20 at 7:06AM
MLS# 9994924
Copyright © 2026 Tennessee Virginia Regional Multiple Listing Service. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This mixed-use property combines office and residential components within a 2,470-square-foot building constructed in 1946. The upper level contains functional office space and a half bath. A separately accessed lower-level apartment includes a bathroom, small kitchen and dining area, two rooms suitable for bedroom or office use, laundry facilities, and a living room. The apartment is equipped with a mini-split, and the building has block construction with a shingle roof.
The property includes 0.41 acres, two lots, a parking area behind the building, a carport, and a separate large storage area. It fronts Milligan Highway and includes an additional lot. B-2 zoning, public water, private sewer, and electricity availability are also noted.
The property includes 0.41 acres, two lots, a parking area behind the building, a carport, and a separate large storage area. It fronts Milligan Highway and includes an additional lot. B-2 zoning, public water, private sewer, and electricity availability are also noted.
Key Highlights
- 2,470‑square‑foot mixed‑use building constructed in 1946
- Upper‑level office area with half bath
- Lower‑level apartment with separate access, kitchen, laundry room, and living room
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$30,011
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
8.23%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$600,220
$600.2K
Cap Rate 7%
$428,729
$428.7K
Cap Rate 9%
$333,456
$333.5K
Market Conditions
NOI Build-Up for 2,470 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$53.4K $21.60/SF
− Vacancy
−$5.3K −$2.16/SF
EGI
$48.0K $19.44/SF
− OpEx
−$18.0K −$7.29/SF
NOI
$30.0K $12.15/SF
Area
Washington County, TN
Vacancy
10.00%
Lease Rate
$21.60 /SF/Yr
Expense Ratio
37.50%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$600,220
Cap Rate 7%
$428,729
Cap Rate 9%
$333,456
Alternative Uses
Best Use
Office B
$520.8K
$455.7K – $607.6K
NOI $36,457 @ 7.0% cap · market cap 10.00%
Second Best
Mixed Use
$428.7K
$375.1K – $500.2K
NOI $30,011 @ 7.0% cap · market cap 8.23%
Theoretical Best
Office A
$1.04M
$911.4K – $1.22M
NOI $72,914 @ 7.0% cap · market cap 20.00%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
154
Businesses Nearby
Explore this area
Business Placement
Demographics for 37601, TN
37,079
Population
18,153
Households
2
Avg Household Size
40
Median Age
33%
College-Educated
91%
High-School Grad
47.7 sq mi
ZIP Area
777
Density / Sq Mi
$49,658
Median Household Income
$32,312
Median Earnings
$892
Median Rent
$187,000
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in South region
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Office and residential areas provide separate access, with parking, a carport, and an additional lot along Milligan Highway.
Where is this mixed-use property located?
The property is located at 1306 Milligan Highway Johnson City, TN.
What is the asking price?
The asking price for this property is $364,500.
What are key features of this property?
This property features: 2,470‑square‑foot mixed‑use building constructed in 1946; Upper‑level office area with half bath; Lower‑level apartment with separate access, kitchen, laundry room, and living room
